A smaller version of a retail mutual fund, it is offered as a subaccount in a variable annuity. The daily price of a clone fund is different among variable annuities that carry it because each clone fund starts on a different date and with a base price of $10.
A fund launched to mirror a closed fund. For example, fund managers may decide to close a fund that has grown so large it is no longer able to establish positions in smaller securities. They could then launch a new fund in the closed fund's image. While both funds would have the same investment objective, they would generally be run by different managers and would invest in different securities.
A mutual fund tracking non-Canadian securities that uses financial derivatives to bypass foreign content limits in an RRSP, RRIF, or LRSP.
A fund which is identical in portfolio composition to an already existing fund but which is fully subject to the Federal Reserve Special Reserve Requirement. Clone funds can be used as variable annuity funds.
A new fund that is set up to emulate an existing mutual fund.